Analysis of Ethereum’s latest financial data on Ultrasound Money reveals a continued shift in its economic model since the historic merger in September 2022.
The decline in Ethereum supply stands at 309,663 ETH, equivalent to approximately $686.2 million. This decline reflects a deflationary trend, as opposed to the previous inflationary nature where new ETH were constantly being created. The cause of this shift is the burning of 1,195,238 ETH, worth approximately $2.65 billion. Permanently removing tokens from circulation plays a crucial role in reducing the overall supply and could increase the scarcity and value of ETH over time. Furthermore, despite the issuance of 885,581 ETH, valued at approximately $1.96 billion, the total supply of Ethereum experienced a net decrease, illustrating that the rate of ETH burning continues to outpace the rate of new issuance.
Currently, Ethereum’s total supply is at its lowest level since the merger at 120,211,380 ETH, which translates to a market capitalization of approximately $266.39 billion, reinforcing its significant position in the crypto market.
A look at the ETH burning leaderboard provides further insight by analyzing the top contracts contributing to ETH burning. The top contributors to this activity include major dApps and services, notably Uniswap in its various iterations, Tether and OpenSea. Uniswap’s prominent position suggests a high transaction volume within the DeFi sector, with $543.8 million burned across four contracts in the top 10.
Tether’s presence indicates significant stablecoin transactions on the Ethereum network, while OpenSea’s inclusion highlights the persistent nature of NFT transactions even during the bear market. This diversity, which includes DeFi platforms, stablecoins, NFT marketplaces, and Layer 2 solutions such as Arbitrum, demonstrates the diverse use of Ethereum.
